The young Gers fell behind in the contest, but showed a much-improved second half showing to level through Callum Burnside.
However, despite looking the more likely of the two sides to find a winner, it was the home side who struck with a minute remaining through Zach Bruce.
Smith named five changes to his side for the trip to Tranent, among which there was a return between the posts for Rydnn McGuire alongside Lewis Stewart, Aidan McCallion, and Ben Hutton.
The raw pace of the latter leading the line ought to have been an area to maximise for Rangers, who immediately released the youngster in-behind, but the offside flag was swiftly raised from McCallion’s pass.
Hibs reigned supreme in this league last season under the previous Under-18 age status, and they spelled out their threat a minute later when Zach Bruce pinched possession in an advanced area and worked McGuire for the first time.
Logan Jimenez then nodded wide from a corner before the opener belonged to the home side.
It was all too easy for full-back Arran McSporran to advance down the right-hand side, lifting his head to pick out Josh McDonald in the penalty area, who lashed beyond McGuire first-time and into the bottom corner.
McDonald was unfortunate not to double his tally on the half-hour mark when his toe-poked finish from the edge of the penalty area cannoned off the underside of the crossbar and back out.
Rangers were still to settle fully into a contest, but a piece of patient play put Hibs on the back foot; Callum Burnside and Stewart combining before Cameron shot off-balance and over.
Indeed, the 16-year-old came close to levelling for the Gers six minutes prior to the interval with a lovely piece of individual play inside the penalty area, but Ryan Mallon was alert to tip his powerful effort over the crossbar.
The second period saw the visitors threatening from a corner as Joseph McGrath headed over unmarked.
By the hour mark, Smith had already rung three changes as James Reid, Cormac Christie, and Aiden Crilly entered the fray.
The young Gers now lined up with a three-man defence and Cameron operating as a right wing-back.
Hibs went close to making Rangers’ task even more difficult as McSporran, the architect of the opener, delivered a dangerous delivery in search of Jimenez, who slashed wide.
The home side’s full-back was almost left red-faced moments later when, down the opposite end, Christie’s cross from the byline was headed against his own goalkeeper. From the follow-up, Burnside contrived to curl over.
However, he wasn’t to be denied a minute later as Rangers restored parity.
It was only fitting that it was a wing-back to wing-back move following the switch to a back three, as Cameron’s driven cross arrived delightfully for Burnside to dispatch a sumptuous volley beyond Mallon.
Rangers looked more likely to find the winner as the Northern Irishman glanced wide from another delivery moments later.
Christie then sprung the offside trap as the contest entered its latter stages, but he couldn’t quite sort his feet out in time to unleash a dangerous effort at goal.
An audacious overhead kick from Burnside almost completed the turnaround with eight minutes to play, but Mallon leapt to his right to produce an outstanding save from the midfielder.
There was a late sting in the tail, however, as Bruce struck with just a minute remaining of normal time after Rangers lost possession midway inside their own half.
RANGERS: McGuire, B. Hutton (Reid, 45), Kerr, Campbell, Wark (Christie, 45), McCallion, Smith (Crilly, 54), Fernie, Stewart, Burnside, Cameron (Hynd, 88)
Subs not used: Thackray, Caldwell
HIBERNIAN: Mallon, McSporran, Riddell, McNeill, McGrath, Bruce, Cleland, McDonald, Jimenez, Davidson, Gillie
Subs: Brown, Macdonald, Burns, Gallacher, Shankland, Downie
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